Example: On 5-8-2009 ABC Company received the bill for Rs. 50000 (for the supply of 1000 cartons @ 50 per carton) from AK Enterprises. Cartons are printed with the company logo and other information as required on which TDS is applicable.

The above transaction is recorded in a Journal Voucher

Step 1: Create Stock Item

Go toGateway of Tally > Inventory Info. > Stock Item > Create

In theNamefield enter the Stock Item Name e.g.Cartons

In theUnderfield selectPrimarygroup

In theUnitfield selectNos

In theRate of VAT (%)field enter4%

PressEnterto save

Step 2: Create Party Ledger

Go toGateway of Tally > Accounts Info. > Ledgers > Create

In theNamefield enter the Ledger Name e.g.AK Enterprises

In theUnderfield selectSundry Creditorsgroup

SetMaintain balances bill-by-billtoYes

Enter theDefault Credit Periodif any

SetIs TDS DeductabletoYes

InDeductee Typefield selectCompany-Resident

Enter theMailing DetailsandTax Information

PressEnterto save

Step 3: Create Expenses Ledger

Go toGateway of Tally > Accounts Info. > Ledgers > Create

In theNamefield enter the Ledger Name e.g.Packing Expenses

In theUnderfield selectIndirectExpensesgroup

SetInventory values are affectedtoYes

SetUse for Assessable Value CalculationtoNo

SetIs TDS DeductabletoYes

In theDefault Nature of Paymentfield selectPayment to Contractors (Other Than Advertisement)

PressEnterto save

Step 4: Create TDS Duty Ledger

In theNamefield enter the Ledger Name e.g.TDS – Contractor Other Than Adv.

In theUnderfield selectDuties & Taxesgroup

In theType of Duty/Taxfield selectTDS

In theNature of Paymentfield selectPayments to contractors (Other Than Advertisement)

PressEnterto save

Step 5: Create Journal Voucher

Go toGateway of Tally > Accounting Vouchers > Press F7: Journal

PressF2and change the date to05-08-2009

In theDebitfield selectPackingExpensesledger from theList of Ledger Accountsand press enter to viewInventory Allocationscreen

Tally, Tally 9, Tally9, Tally.ERP, Tally.ERP 9, Tally.Server 9, Tally.NET & Power of Simplicity are either registered trademarks or trademarks of Tally Solutions Pvt. Ltd. in India and/or other countries. All other trademarks are properties of their respective owners.

The visitors may click here to visit the web site of Tally Solutions Pvt. Ltd. for resolving their doubts or for clarifications